U.S. markets closed
  • S&P Futures

    4,273.50
    -7.50 (-0.18%)
     
  • Dow Futures

    33,658.00
    -60.00 (-0.18%)
     
  • Nasdaq Futures

    13,551.75
    -26.00 (-0.19%)
     
  • Russell 2000 Futures

    2,013.30
    -3.60 (-0.18%)
     
  • Crude Oil

    91.75
    -0.34 (-0.37%)
     
  • Gold

    1,816.60
    +1.10 (+0.06%)
     
  • Silver

    20.78
    +0.08 (+0.40%)
     
  • EUR/USD

    1.0263
    -0.0063 (-0.61%)
     
  • 10-Yr Bond

    2.8490
    -0.0390 (-1.35%)
     
  • Vix

    19.53
    -0.67 (-3.32%)
     
  • GBP/USD

    1.2134
    -0.0069 (-0.56%)
     
  • USD/JPY

    133.5330
    +0.5340 (+0.40%)
     
  • BTC-USD

    24,347.13
    -102.47 (-0.42%)
     
  • CMC Crypto 200

    574.64
    +3.36 (+0.59%)
     
  • FTSE 100

    7,500.89
    +34.98 (+0.47%)
     
  • Nikkei 225

    28,546.98
    +727.68 (+2.62%)
     

RADA Agrees To All-Stock Merger With Leonardo DRS

  • Oops!
    Something went wrong.
    Please try again later.
·1 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • RADA Electronic Industries Ltd.(NASDAQ: RADA), an Israel-based provider of small-form tactical radars, and Leonardo DRS Inc have agreed to merge and become a combined public company.

  • U.S.-based mid-tier defense technology provider Leonardo DRS is a wholly-owned subsidiary of Leonardo S.p.A. (OTC: FINMY).

  • Leonardo DRS will acquire 100% of the share capital in RADA in exchange for ~19.5% equity ownership in the combined company to RADA shareholders.

  • The combined company will maintain the name Leonardo DRS and is anticipated to trade on NASDAQ and TASE under the symbol "DRS."

  • RADA will become a wholly-owned subsidiary of Leonardo DRS.

  • RADA expects the transaction to be accretive to earnings per share in year one.

  • The 19.5% ownership in the combined company provided to RADA shareholders was designed to provide a premium of over 20% (based on RADA 30-day VWAP as of June 17, 2022, of $11.76).

  • The combined company had revenue of $2.7 billion and $305 million of Adjusted EBITDA in FY21.

  • The combined company targets a low teen Adjusted EBITDA CAGR through FY23 from an FY21 base of $305 million.

  • Price Action: RADA shares are trading lower by 3.35% at $11.25 and FINMY higher by 10.93% at $5.38 on the last check Tuesday.

See more from Benzinga

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.